NJ Asks US Supreme Court to Review Prediction Market Enforcement
New Jersey has asked the US Supreme Court to review its enforcement action against prediction market platform Kalshi. The state's top legal and gaming officials argue that federal law does not preempt states from regulating sports bets within their jurisdictions, even if those platforms claim to be operating under a federal framework.
The dispute centers on whether Kalshi's markets are registered with the Commodity Futures Trading Commission (CFTC) and should be treated as 'swaps' under the Commodity Exchange Act. New Jersey claims that if CFTC preemption is broad enough, it could make certain sports-betting activities illegal in states where they would otherwise be permitted.
Kalshi disagrees with the appeal, arguing that prediction markets cannot function under a patchwork of state regulators. The company's spokesperson stated that 'we cannot be regulated by 50 different regulators.'